Popular meme cryptocurrency, Dogecoin is stirring the interest of investors in no small measure despite being a joke token. CEO of Three Arrows Capital, Su Zhu has propped Dogecoin as a crypto asset that is easy to understand and has become appealing to ‘blue-collar traders’ or retail investors globally. Su Zhu also outlined factors responsible for investors’ interest in Dogecoin.
While speaking on an episode of The Game of Theory podcast, Zhu noted that his interest in Dogecoin was instigated by the traction it has gained among ‘blue-collar traders.’ In addition, the CEO stated that Dogecoin is now choicest crypto for investments among investors more than any other cryptocurrency.
Robinhood’s Q2 Crypto Revenue Spiked Because of Dogecoin, Says Su Zhu
To back his claim, Zhu cited a data report from crypto and stock trading app, Robinhood, in which the latter stated that most of its Q2 crypto revenue came from Dogecoin trading on its platform. Robinhood’s report, released earlier in August, showed that if the platform stopped Dogecoin trading, its crypto revenue will be significantly affected. Zhu factored Robinhood’s popularity among millennials and retail investors as a catalyst for the increase in Dogecoin trading.
Su Zhu also brought US-based crypto exchange Coinbase into the picture, submitting that the trading volume of Dogecoin was higher than that of Ethereum a few days ago. According to him, this is a reflection of the fact that people are really interested in trading the token
Back in July, it was reported that Dogecoin daily trading volume almost got to $1 billion in Q2. Q1 figure pales in comparison to the former as the average daily trading volume was $74 million.
‘Dogecoin More Recognized in Non-crypto Communities’
Dogecoin is the most popular cryptocurrency in non-crypto circles over altcoin, Ethereum, said Sun Zhu. This is similar to the argument put forward by Tesla billionaire, Elon Musk in which he stated that Dogecoin is now the ‘people’s crypto.’ Dogecoin can be owned in whole amounts and by anybody, because it is easy to understand, added Zhu.
While it could be easy for professional traders to avoid trading Dogecoin due to its meme and volatile nature, Su Zhu argued that cryptocurrencies do not have to be serious before they gather success. He referenced XRP, whose parent firm, Ripple is currently embroiled in a legal controversy with the US SEC since late 2020, but attained massive gains in 2017.
Meanwhile, Dogecoin is set to become a more valuable cryptocurrency as its creators, Billy Markus and Jackson Palmer have returned to develop a roadmap for the token. A year after the token’s creation, the Dogecoin Foundation- a non-profit organization set up for the meme token itself- was dissolved.
Now, the foundation is back together with recent additions to it. Ethereum founder, Vitalik Buterin and Musk’s delegate are set to play advisory roles in the team. Dogecoin received an upgrade on its network recently, touted to introduce fee reduction and other benefits.